SouthState Bank has unveiled the Opportunity Advantage Loan Fund, a new mortgage option that is designed to help qualified low-to-moderate income (LMI) borrowers achieve homeownership.
The Opportunity Advantage Loan Fund is available for LMI homebuyers in Alabama, Florida, Georgia, the Carolinas and the Richmond, Virginia, market. According to the bank, a loan fund of up to $12,500 can be awarded to qualifying buyers for use towards down payment, closing costs, or other fees related to the purchase of a primary residence. The loan is 100% forgivable with no repayment and 0% interest if the buyer owns the home for at least five years – repayment stipulations apply for properties that are sold prior to five years of ownership.
Eligible applicants must have an income of 80% or less of the county area median income adjusted for family size and a minimum 640 FICO credit score. The funds from this program may only be used on the purchase of a primary residence. This offer must be combined with a Buyer’s Advantage, Community Advantage, Home Ready or Home Possible mortgage.
To finance the fund, SouthState allocated $10 million that will be drawn from over a three-year period.
“The current mortgage rate environment has made it more challenging for some people, particularly would-be first-time-homebuyers to purchase a home,” said Stephen Cannon, mortgage co-president at SouthState Bank. “Homeownership is a foundational component to building wealth and ultimately creating a prosperous financial existence, and the Opportunity Advantage Loan Fund could make a significant impact for homebuyers throughout our six-state footprint.”
SouthState Bank is the nationally chartered banking subsidiary of SouthState Corp. (NASDAQ: SSB), a financial services company headquartered in Winter Haven, Florida.